Remembering the Phrase: “No taxation without representation.”

 Also posted as a LinkedIn article.

 

As Americans prepare to celebrate the 250th anniversary of the signing of the Declaration of Independence, it might be a good time to review one of its founding principles: "No taxation without representation." 

It was a powerful political slogan championed by American colonists in the 1760s and 1770s. This motto clearly communicated the thought that taxes should not be imposed by the British Parliament, as the colonists had no representatives and, therefore, no say in how or why taxes were levied. The colonists argued that taxing a populace without their consent, through representatives, was a violation of their rights as Englishmen (since as British colonists, they were).

The principle behind "no taxation without representation" was, and is, a cornerstone of American democracy and its capitalistic ‘free enterprise’ economic system. The motto clearly emphasizes the importance of consent by elected representation in all matters of governance, especially taxation.

Socialism and Communism. While the New York City mayoral candidate, Zohan Mamdani, calls himself a Socialist Democrat, some call him a Communist. Socialism (according to Investopedia.com, a global financial media website that provides definitions, explanations, and educational content) is a populist economic and political system based on collective, common, or public ownership of the means of production. Those means of production include the machinery, tools, and factories used to produce goods that aim to directly satisfy human needs. In a purely socialist system, all production and distribution decisions are made by the collective, directed by a central planner or government body.

Communism is defined as a political and economic ideology that positions itself in opposition to liberal democracy and capitalism. Instead, communism advocates for a classless system in which the means of production are owned communally, and private property is nonexistent or severely restricted. 

Communism does differ slightly from socialism. Specifically, communists ultimately seek the abolition of the state itself, while socialists may accept varying degrees of state management and private property. Socialists contend that shared ownership of resources and central planning provide a more equal distribution of goods and services and a more equitable society. It is also taxation without representation.

Capitalism, in stark contrast to both socialism and communism, is where business owners control the means of production and pay wages to workers to use those means, as opposed to socialism, which envisions shared ownership and control among the laboring class. Capitalism is an economic foundation that is separate from its government. The United States, as a representative republic, through its Legislative Branch, made up of the elected members of both houses of Congress, ensures a process of taxation with representation. 

 

Both Democrats and Republicans may have different political positions or agendas, but they are all capitalists under a democratic representative republic. The definitions of both Socialism and Communism are taxation without representation. Therefore, it can be considered literally traitorous to espouse that America should adopt any form of these systems.

In the context of today, it is imperative to understand and examine these concepts in light of the rise of the Democratic Party’s progressive movement and the Socialist Democratic platform that Mamdani and others are politically espousing. It should be noted that “Social Democrat” is in itself a ‘non sequitur,’ as pointed out by the Foundation of Economic Education’s article “Democratic Socialism” is a Contradiction in Terms.

Even though Mamdani, and other so-called Democrat-Socialists, may be an “elected representative,” all of their political socialist (and/or communist) positions are clearly counter to the important American democratic and capitalistic founding principle of “no taxation without representation.” 

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David S. Levine, MBA. Author of “How to Run the Business of YOU” and “Revolutions: In Their Own Words – What They Really Say About Their Causes.” David is a former New York City advertising & marketing executive, and a retired Rutgers University instructor.

 

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